Business groups gave a somewhat weary response to John Swinney’s plans to grow the economy and tackle business costs, most of which were couched in more consultations, reviews and long term pledges.
Mr Swinney said he will set up a major projects office, to speed up delivery of large strategic developments, and a specialist support unit for high-growth businesses, though the latter has already been announced.
In a programme for government that focused on reforming the public sector, he said there will be a three-month consultation on reforming Scotland’s 32 local authorities, with proposals to pool back-office functions and create region-wide decision-making bodies, a hint of a return to the old regional councils.
“We are faced with the reality that some of our councils are too small to be strategic and some are too big to be local,” said the First Minister. “The government believes that should change.
“Our actions are about improving public services and at the heart of this approach is the need for simpler and more coherent decision-making structures.”
There will be a consultation on introducing a food price cap, already heavily-criticised by industry groups, while a £2 bus fares cap will be introduced next Monday. There was no more detail on long-awaited reforms of business rates or the planning process.
Michelle Ferguson, the director of CBI Scotland, said: “Businesses do not need more strategies or reviews. They need to see decisions made faster, investment unlocked and the barriers to growth removed.
On business rates, she said: “While the government has provided relief to help businesses through the 2026 business rates revaluation, it has not set out the fundamental reform business need.
“Business needs a simpler, more transparent and competitive rates system with greater certainty over costs and a clear commitment that Scotland will remain competitive with the rest of the UK.”
On the lack of any further detail on planning, she added: “Consultations are welcome, but the Government must push ahead with full-throttle reform of a planning consenting system that is too slow, resource-starved and the single biggest brake on investment and economic growth, particularly in grid upgrades, offshore wind, the development of housing and industrial sites.”
Mr Swinney gave a commitment to “substantially reduce” the number of public bodies, which is currently more than 130. As Daily Business forecast, this will include bringing Transport Scotland into central government, merging existing environmental bodies into one organisation and the creation of a single ferries body for the Clyde and Western Isles routes.
Gail Boag, ICAS CEO, said: “We agree with the First Minister that Scotland’s economic growth has been ‘too low for too long’. Addressing that challenge needs more than ambition alone. The priority now must be delivery.
“The commitment to meaningful public service reform is therefore a positive one, but bold promises must now be backed by clear plans for delivery and improved outcomes for citizens.
“The Programme for Government offered little detail on how that growth will be delivered. Scotland now needs sustained action to improve productivity, attract investment and create the right conditions for businesses to grow.
Reform UK Scotland leader Malcolm Offord said: “Welcome back to Groundhog Day. Same old empty promises, just rebranded, but still a medley of sticking plasters and gimmicks instead of practical, long-term solutions for the benefit of the Scottish people.
“What message of hope did the FM give to our 380,000 SMEs who are struggling with rising costs in energy, in employment costs, in rent, in business rates, in taxes?
“Two million Scots did not vote in the May Election, double the one million that voted SNP. They are fed up with performative politics; instead, they want good Government.”
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